Skip to content

What’s worse than getting hacked? Not having Cyber Insurance!

Cybersecurity threats have become increasingly common in recent years and businesses of all sizes in Victoria, Australia, are at risk of cyber-attacks. Hackers and cyber criminals can target businesses of all types, from Optus and Medibank to small startups and the cost of a successful attack can be devastating. That’s why it’s essential for businesses to have insurance coverage for cyber-attacks. In this blog, we’ll take a look at the importance of insuring your Victorian business against the threat of cyber hacks.

Why Cyber Insurance is essential for your business

As cyber-attacks continue to increase in frequency and severity, businesses are more vulnerable than ever before. A successful cyber-attack can result in the loss of sensitive data, financial loss and damage to a company’s reputation. Cyber insurance is designed to help businesses recover from these attacks by providing financial protection, as well as access to resources such as legal counsel, public relations professionals and cybersecurity experts.

Types of cyber-attacks your business may face

  1. Phishing: Involves sending emails that appear to be from a legitimate source, such as a bank or a trusted vendor, in order to obtain sensitive information like usernames, passwords and credit card details.
  • Malware: Refers to malicious software that is designed to damage, disrupt, or gain unauthorised access to computer systems. Examples include viruses, worms, Trojans and ransomware.
  • Distributed Denial of Service (DDoS) attacks: Involve overwhelming a server or network with traffic, which can cause it to crash or become unavailable.
  • Man-in-the-middle (MITM) attacks: A cyber-criminal intercepts communications between two parties, allowing them to eavesdrop or alter the messages being sent.
  • SQL injection: Involves exploiting vulnerabilities in web applications to access databases and steal sensitive information.
  • Password attacks: Attempts to gain access to a system or account by guessing or cracking passwords.
  • Social engineering: Involves tricking people into revealing sensitive information or taking certain actions, often by impersonating someone else.
  • Zero-day attacks: Exploits vulnerabilities that are unknown to the software vendor, which makes them difficult to defend against.

What Cyber Insurance covers

Cyber insurance policies can vary widely in terms of coverage, but they generally provide protection against the following:

  1. Data breaches: A data breach can occur when hackers gain access to sensitive information such as credit card numbers, social security numbers and other personal information. Cyber insurance can cover the costs associated with notifying customers, providing credit monitoring services and other expenses related to the breach.
  • Business interruption: A cyber-attack can disrupt business operations and cause significant financial losses. Cyber insurance can cover the costs associated with business interruption, including lost revenue, extra expenses and other related costs.
  • Cyber extortion: Cyber criminals can threaten to release sensitive information or disrupt business operations unless a ransom is paid. Cyber insurance can provide coverage for these types of threats.
  • Third-party liability: If a cyber-attack results in the loss of customer data or damages to third-party systems, the business may be held liable for the damages. Cyber insurance can provide coverage for these types of claims.

Choosing the right Cyber Insurance Policy

When choosing a cyber insurance policy, it’s important to consider the following factors:

  1. Coverage limits: Make sure the policy provides adequate coverage to protect your business in the event of a cyber-attack.
  • Deductibles: Consider the deductible amount and whether it’s affordable for your business.
  • Exclusions: Be sure to read the policy carefully and understand any exclusions that may limit coverage.
  • Claims process: Understand the claims process and what’s required to file a claim.
  • Cybersecurity support: Look for policies that provide access to cybersecurity experts and resources to help prevent cyber-attacks from happening in the first place.

Want to know more about cyber insurance? Book a free consultation with Ensure

If you’re looking for an insurance broker in Warragul or Melbourne who can find you the best cyber insurance policy for your business, call our friendly team at Ensure Risk Solutions today and we’ll arrange a free, no obligation consultation. You can email or call our Warragul office on 03 5625 4455, or if in Melbourne please call 03 9923 2851. With the right insurance coverage, you can rest assured that your business is protected from potential financial losses and damages of a cyber-attack.

Scroll To Top